Selling Bags at a Loss

[Tartlet]

Personally, I think the problem stems from thinking of not getting your money back as a “loss”. It’s not a refund. And it’s certainly not an investment with guaranteed rate of return. It’s sunk cost and nothing more than purchase regret or item fatigue when looking to sell. Why on earth should anyone expect to make their money back on a used, second hand, out-of-season, or out-of-fashion handbag?

I’ve learned this lesson myself. Yes, it was painful. But, once I accepted that I’m solely responsible for my spending, I moved on. I can’t blame the market, the would-be buyers, or resellers for my own mistake or boredom with an item that no longer works for me. Nor is it reasonable to shift the financial cost of my purchase regret on to them. It took a while for me to embrace that reality. But now, I only spend money on luxury items that I’m 100% comfortable “loosing”.

 

[jayohwhy]

Personally, I think the problem stems from thinking of not getting your money back as a “loss”. It’s not a refund. And it’s certainly not an investment with guaranteed rate of return. It’s sunk cost and nothing more than purchase regret or item fatigue when looking to sell. Why on earth should anyone expect to make their money back on a used, second hand, out-of-season, or out-of-fashion handbag?

Totally agree with this sentiment. I had to have the same conversation with my dad about trading in his iPhone 6s to upgrade it, and he's like, I spent 800 on this, why am I only getting $250 back? I told him, it's like a shirt that you bought and worn and then someone offers you $5 for it and you're like I spent $40 five years ago!

 

[Kylacove]

My economics professor in college said a similar thing. He said after you purchase and item that money is gone. The value of the item then becomes what a buyer is willing to pay for it and if it is costing you something to keep it.

 

[RT1]

My economics professor in college said a similar thing. He said after you purchase and item that money is gone. The value of the item then becomes what a buyer is willing to pay for it and if it is costing you something to keep it.

Oh My, there is a whole lot of truth to this concept.
And, right now, buyers are being very picky with their $$$.

 

[PineappleMinnie]

Oh My, there is a whole lot of truth to this concept.
And, right now, buyers are being very picky with their $$$.

Partly it’s probably because the pandemic heightened some people’s financial insecurity. Hence, people tend to be more careful with their money spending habits. From my perspective, the pandemic really let people understand some jobs can be easily gone.

 

[Grande Latte]

I've sold many bags at a loss before. All long before this pandemic, I sold them to streamline my collection. Then years later, I either regret the sale, or think I shouldn't have sold it immediately because I have a spot for them now. Or I wish I sold something else instead,...etc.

So unless you're tight with money, hang on to your bags. I don't like taking immediate losses. Having said this, think HARD before you purchase a bag. Think of multiple places and occasions where you'll use the bag. In other words, never impulsive purchase anything.

 

[giantswing]

As a buyer, I find it so frustrating when sellers look to recoup the price of the item they bought. As a buyer you don't get a guarantee, an option to return or try on anything, let alone reassurance it is authentic. The depreciation of an item once it is used, even once, is astronomical. The idea of charging top dollar for something "used lightly" is insane. Even NWT should be marked down.

"But I paid $$$ so I'm charging $$$ so I don't lose money -"

I'm sorry, but to be frank, I'm not bargain shopping so you don't loose money, TBH.

When I sell things I know they'll go for less than what I paid. That's the price I pay for having and using them.

 

[doni]

I agree that the problem is this whole concept of selling at a loss, which implies you have made a wrong judgement in an investment decision. But my guess is you bought those handbags because you liked them and you wanted to wear them, not to invest as then you could (should) have put your money in some fund. So if it turns out you don’t enjoy them as much as you thought, but you are still able to recover some money by reselling, that is good isn‘t? Means you are paying a lower price for a mistake (and mistakes happen). If you make some money after having enjoyed them, that’s even better.

 

[Diva_k3000]

I agree that the problem is this whole concept of selling at a loss, which implies you have made a wrong judgement in an investment decision. But my guess is you bought those handbags because you liked them and you wanted to wear them, not to invest as then you could (should) have put your money in some fund. So if it turns out you don’t enjoy them as much as you thought, but you are still able to recover some money by reselling, that is good isn‘t? Means you are paying a lower price for a mistake (and mistakes happen). If you make some money after having enjoyed them, that’s even better.

Almost all items lose about 30-50% of their value the second they leave the store. That’s just a fact of life. If you can sell a secondhand item for 50% or more of its original price, that’s usually pretty good. That can be a significant “loss” when we’re talking about handbags that originally detailed for thousands of dollars.

If you’re hoping to “profit” (I.e., sell them for more money than you paid) from selling secondhand items, you’re very rarely going to be able to. When I sell bags or other secondhand items, I look at the amount I bought it for vs. the amount I can sell it for and decide if the amount is worth it for the use I got out of it. (Ex:If I bought a bag for $400, and sold it 5 years later for $150, did I use it enough in those 5 years to substantiate having “paid” $250?)

 

[PineappleMinnie]

Almost all items lose about 30-50% of their value the second they leave the store. That’s just a fact of life. If you can sell a secondhand item for 50% or more of its original price, that’s usually pretty good. That can be a significant “loss” when we’re talking about handbags that originally detailed for thousands of dollars.

If you’re hoping to “profit” (I.e., sell them for more money than you paid) from selling secondhand items, you’re very rarely going to be able to. When I sell bags or other secondhand items, I look at the amount I bought it for vs. the amount I can sell it for and decide if the amount is worth it for the use I got out of it. (Ex:If I bought a bag for $400, and sold it 5 years later for $150, did I use it enough in those 5 years to substantiate having “paid” $250?)

I agree with your perspective. Continue with your example, the issue is sometimes I buy bags and end up don’t get much use out of it (e.g. less than 5 times). Then, $250 is a significant loss for only two usage, for instance. The cost per wear is $125. To me, this cost per wear is too high.

It comes back to the downside of online shopping - you don’t get to try on the bag. When it gets here, you realize it’s not what you’re looking for, and it’s a hassle to return by shipping it back (especially when return is not free).

 

[Diva_k3000]

I agree with your perspective. Continue with your example, the issue is sometimes I buy bags and end up don’t get much use out of it (e.g. less than 5 times). Then, $250 is a significant loss for only two usage, for instance. The cost per wear is $125. To me, this cost per wear is too high.

It comes back to the downside of online shopping - you don’t get to try on the bag. When it gets here, you realize it’s not what you’re looking for, and it’s a hassle to return by shipping it back (especially when return is not free).

Yes, online shopping without seeing the item in person beforehand definitely has some potential for disappointment. I’ve learned the hard way it’s important to be selective about purchases, especially online. I’ve been burnt on that, too.

 

[PineappleMinnie]

Yes, online shopping without seeing the item in person beforehand definitely has some potential for disappointment. I’ve learned the hard way it’s important to be selective about purchases, especially online. I’ve been burnt on that, too.

Do you try to buy all your bags in person? I try to. I am on the short side. Maybe for an average height person, the strap length is fine. But, when it’s on my body, the bag may hit me at a weird height .

 

[Diva_k3000]

Do you try to buy all your bags in person? I try to. I am on the short side. Maybe for an average height person, the strap length is fine. But, when it’s on my body, the bag may hit me at a weird height .

I buy most of my bags online. I’m only 5’1”, so many bags end up a weird length on me. This is why I LOVE my top handle bags. I honestly have been lucky since my major crossbody purchase was my Gucci Soho disco which is petite friendly — it hits me perfectly.

 

[PineappleMinnie]

I buy most of my bags online. I’m only 5’1”, so many bags end up a weird length on me. This is why I LOVE my top handle bags. I honestly have been lucky since my major crossbody purchase was my Gucci Soho disco which is petite friendly — it hits me perfectly.

I am 5'. I love top handle bags too, but I found myself gravitating towards crossbody bags these days. The life of a working mom with a toddler .